Arm Your Portfolio With SAIC

The defense service provider's stock, which yields 3.8%, could rise 35% in the next 18 months.

For investors, the best offense can be a good defense stock, such as government services provider SAIC.

Uncertainty over defense-spending cuts continues to hang over defense contractors, especially defense services providers, whose work is shorter-term in nature, potentially making them more vulnerable to cuts.

SAIC's (ticker: SAI) stock, which closed Tuesday at $12.59, is cheap as a result, trading for 5.5 times expected...